Alexandra and Julie Steinberg of The Wall Street Journal report that America is in talks with at least three firms about purchasing a Congolese company. They write:
The Biden administration has held talks with three firms in recent weeks about purchasing one of the world’s largest non-Chinese cobalt producers, according to people familiar with the matter, as the U.S. attempts to loosen Beijing’s global grip on a metal seen as central to the green-energy revolution.
The talks over Chemaf, a mining company based in the Democratic Republic of Congo, are part of a push by the administration to secure global supplies of a metal used in everything from jet fighters and drones to electric-vehicle batteries. […]
Last year, Chemaf said it needed an additional $250 million to $300 million to finish the projects, amid low cobalt prices.
Chemaf currently holds $900 million of debt, including money owed to a large number of in-country contractors, according to a person close to the company.
In June, Chemaf agreed to sell itself to Chinese state-backed Norin Mining. Shortly after, U.S. pressure helped block the sale, according to people familiar with the transaction. The Congolese government was also eager to diversify away from Chinese partners, the people said. […]
The U.S. government recently asked Phoenix-based copper company Freeport-McMoRan whether it would be interested in returning to Congo, people familiar with the matter said. Freeport operated there until 2016, when, during a troubled period, it sold its stake in a copper and cobalt mine to a Chinese company to raise cash.
Freeport isn’t currently focused on acquiring new assets, but it would go back in for the right project, one of the people said. It hasn’t looked at Chemaf, the person said.
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